9. Joe's starting salary as a mechanical engineer is around $80,000. Joe is planning to place a total of 10% of his salary each year in the mutual fund. Joe expects a 5% salary increase each year for the next 30 years of employment. If the mutual fund will average 7% annual return over the course of his career, what can Joe expect at retirement? 8 Click the icon to view the interest factors for discrete compounding when i= 7% per year. The amount Joe can expect at retirement is $ (Round to the nearest dollar.)
9. Joe's starting salary as a mechanical engineer is around $80,000. Joe is planning to place a total of 10% of his salary each year in the mutual fund. Joe expects a 5% salary increase each year for the next 30 years of employment. If the mutual fund will average 7% annual return over the course of his career, what can Joe expect at retirement? 8 Click the icon to view the interest factors for discrete compounding when i= 7% per year. The amount Joe can expect at retirement is $ (Round to the nearest dollar.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
9.
Transcribed Image Text:TUINUL
21
4.1406
0.2415
44.8652
0.0223
10.8355
0.0923
22
4.4304
0.2257
49.0057
0.0204
11.0612
0.0904
23
4.7405
0.2109
53.4361
0.0187
11.2722
0.0887
24
5.0724
0.1971
58.1767
0.0172
11.4693
0.0872
25
5.4274
0.1842
63.2490
0.0158
11.6536
0.0858
26
5.8074
0.1722
68.6765
0.0146
11.8258
0.0846
27
6.2139
0.1609
74.4838
0.0134
11.9867
0.0834
28
6.6488
0.1504
80.6977
0.0124
12.1371
0.0824
29
7.1143
0.1406
87.3465
0.0114
12.2777
0.0814
30
7.6123
0.1314
94.4608
0.0106
12.4090
0.0806
31
8.1451
0.1228
102.0730
0.0098
12.5318
0.0798
32
8.7153
0.1147
110.2182
0.0091
12.6466
0.0791
33
9.3253
0.1072
118.9334
0.0084
12.7538
0.0784
34
9.9781
0.1002
128.2588
0.0078
12.8540
0.0778
35
10.6766
0.0937
138.2369
0.0072
12.9477
0.0772
Transcribed Image Text:9.
Joe's starting salary as a mechanical engineer is around $80,000. Joe is planning to place a total of 10% of his salary each year in the mutual fund. Joe expects a 5% salary
increase each year for the next 30 years of employment. If the mutual fund will average 7% annual return over the course of his career, what can Joe expect at retirement?
8 Click the icon to view the interest factors for discrete compounding when i= 7% per year.
The amount Joe can expect at retirement is $
(Round to the nearest dollar.)
8: More Info
Single Payment
Equal Payment Series
Compound
Present
Compound
Sinking
Present
Capital
Recovery
Amount
Worth
Amount
Fund
Worth
Factor
Factor
Factor
Factor
Factor
Factor
(F/P, i, N)
(P/F, i, N)
(F/A, i, N)
(A/F, i, N)
(PIA, i, N)
(A/P, i, N)
1
1.0700
0,9346
1.0000
1.0000
0.9346
1.0700
2
1.1449
0.8734
2.0700
0.4831
1.8080
0.5531
3
1.2250
0.8163
3.2149
0.3111
2.6243
0.3811
4
1.3108
0.7629
4.4399
0.2252
3.3872
0.2952
1.4026
0.7130
5.7507
0.1739
4.1002
0.2439
6
1.5007
0.6663
7.1533
0.1398
4.7665
0.2098
7
1.6058
0.6227
8.6540
0.1156
5.3893
0.1856
8
1.7182
0.5820
10.2598
0.0975
5.9713
0.1675
9
1.8385
0.5439
11.9780
0.0835
6.5152
0.1535
10
1.9672
0.5083
13.8164
0.0724
7.0236
0.1424
11
2.1049
0.4751
15.7836
0.0634
7.4987
0.1334
12
2.2522
0.4440
17.8885
0.0559
7.9427
0.1259
13
2.4098
0.4150
20.1406
0.0497
8.3577
0.1197
14
2.5785
0.3878
22.5505
0.0443
8.7455
0.1143
15
2.7590
0.3624
25.1290
0.0398
9.1079
0.1098
16
2.9522
0.3387
27.8881
0.0359
9.4466
0.1059
17
3.1588
0.3166
30.8402
0.0324
9.7632
0.1024
18
3.3799
0.2959
33.9990
0.0294
10.0591
0.0994
19
3.6165
0.2765
37.3790
0.0268
10.3356
0.0968
20
3 R697
n 2584
40 9955
0 0244
10 5940
n na44
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